Dhaka, Nov. 8 -- Malfunctioning insurance firms may also face merger or liquidation under a new reform recipe of the interim government, hot on the heels of banking-sector overhaul drive.

Sources say the insurance regulator has finalised the Insurer Resolution Ordinance 2025, paving the way for sweeping insurance reforms the way the banking-sector problems are being fixed, starting the mergers of five hollowed Islamic banks into a big one.

The Insurance Development and Regulatory Authority (IDRA), which oversees 82 life and non-life insurance companies, has finalised the draft law in consultation with industry stakeholders.

The ordinance has been submitted to the Financial Institutions Division under the Ministry of Finance for necessa...